Jeremy Hobson: One of the first items on the agenda for Congressional Republicans, when they get back from their Fourth of July break, will be to shine a spotlight on what they call the “onerous burdens” of Wall Street reform — as in the Dodd Frank regulatory overhaul of the financial sector. The law was meant to correct problems that led to the 2008 financial meltdown. But House Republicans say the new regulations are hurting small community banks far from Wall Street.
Marketplace’s Shereen Marisol Meraji has more.
Shereen Marisol Meraji: David Schweikert is on the House Financial Services Committee. The Arizona Republican says Dodd-Frank’s new rules are scaring community bankers in his district.
David Schweikert: They’re hedging, they’re holding back capital.
Frank Sorrentino, chairman and CEO of North Jersey Community Bank, says that’s true.
Frank Sorrentino: Of course we want to lend, but the issue is we may have our hands somewhat tied for fear of where these regulations are going.
He’s worried rules meant to rein in big banks could hurt small banks like his.
Robert Jackson: Like any members of an industry that’s about to endure new regulations they’re skeptical and nervous and that’s very understandable.
Robert Jackson helped the Obama administration draft some of the provisions that eventually became Dodd-Frank. He says the act was written with small banks in mind.
Jackson: And so they exempted small banks from many of the most important provisions of Dodd-Frank, but, the bottom line is it’s far too soon to tell.
This month marks Dodd-Frank’s second anniversary and many of the regulations have yet to be enacted.
I’m Shereen Marisol Meraji for Marketplace.
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